Archive for the ‘Forex signals’ Category

What is margin in forex trading?

TweetThe sum of money required to open a trade as a deposit with your broker is a margin. Its basic purpose is to maintain your position, wherein the broker would take your margin deposit and add up with other trader’s margin deposit. Then use as big margin to place with inter-banks.   
Let’s say if you [...]

What is leverage in forex trading?

TweetLeveraging is basically controlling or using big sum of money against the small money invested or small money invested and rest is borrowed. Generally the investor can lever their investment for higher returns. In forex market leveraging would give you opportunity to trade multiple times higher against the money invested. The leverage present in forex [...]

What is a Pip?

TweetThe least price rise a currency can make. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY.
What is a Pip Value?
Pip value can be either fixed or variable depending on the currency pair. e.g. The pip value for EUR/USD is always $10 for standard lots, $1 for mini-lots and $0.10 for micro [...]